The formula AQ * (SP - AP) is the:a. direct materials spending variance.b. direct materials volume variance.c. direct materials price variance.d. direct materials quantity variance.

The correct answer is:c. direct materials price variance. ExplanationThe formula: Direct Materials…

Answered: The formula AQ * (SP - AP) is the: a.…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 7Q: How do price and quantity variances relate to materials costs?

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Similar questions

How do price and quantity variances relate to materials costs?
What are the two variances between the actual cost and the standard cost for direct materials?
Use the information provided to answer the questions. All material purchased was used in production. A. What is the standard price paid for materials? B. What is the direct materials quantity variance? C. What is the total direct materials cost variance? D. If the direct materials price variance was unfavorable, what would be the standard price?
When should a standard cost variance be investigated?
What is the direct labor time variance?
What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
What is the significance of a production-volume variance?
Explain who is in the best position in the organization to influence each of these variances. a. Direct Materials Price Variance b. Direct Materials Quantity Variance c. Direct Labor Rate Variance d. Direct Labor Time Variance
The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons
Which of the following is the correct formula for the direct materials quantity variance? O a. (Actual Quantity - Actual Price) - (Standard Quantity Standard Price) O b. (Actual Quantity- Standard Quantity) * Actual Price O c. (Actual Price - Standard Price) × Actual Quantity O d. (Actual Quantity - Standard Quantity) x Standard Price
Vd

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The formula AQ * (SP - AP) is the: a. direct materials spending variance. b. direct materials volume variance. c. direct materials price variance. d. direct materials quantity variance.